Joblinge by Berlin Transfer

JOBLINGEâ&#x20AC;&#x201D;Joining Forces to Address Youth Unemployment Introduction

May 2014

A jointgemeinsame initiative of The Boston Group and theGroup Eberhard Kuenheimvon Foundation of Stiftung BMW AG Eine Initiative vonConsulting The Boston Consulting und von der Eberhard Kuenheim der BMW AG

Currently, 600,000 youths have not yet found jobs after secondary school … • 50% of students in lower secondary school still do not have a training position one year after completing school • 300,000 youths are in the "transition system" between school and training1

From school straight to social welfare? • Less than 20% of underprivileged youth make the transition into training • 1 in 6 fears long-term unemployment

Demographic change and lack of skilled workers do not solve the problem of these youth! 1. As of the end of 2011 Source: "Education in Germany 2012" Authoring Group Educational Reporting, 2012, statistics from the Federal Employment Agency; Bertelsmann Foundation

JOBLINGE supports in particularly difficult cases … Who is the JOBLINGE target group?

Target group

Statistics

Dreams

100%

JOBLINGE participants …  Disadvantaged in many ways  Average of three years in transition system

No placement necessary

 Most are over 20 years old  Over 60% with no more than a lower secondary education  Over 70% have an immigrant background

Placeable in professional training (industry/ school)

 Over 60% receive social welfare  Approximately 65% are male

Placeable in state-subsidized labor market Adolescents age 15–25 JOBLINGE target group

Findings of a representative workshop with JOBLINGE participants

… and yet outcomes of the program show real successes Other measures in the transition system

JOBLINGE is …

… quicker

Ø 6 months

vs.

Ø 17 months1

… more effective

65% placement rate

vs.

33% placement rate2

… less expensive

Ø €6,400 per participant

vs.

Ø €19,000 per participant3

Sustainable success: 80% of participants still in training position after six months 1. Programs are usually one year long—avg. time in the transition system is 17 months; Bertelsmann Foundation: "Influence of demographic development on the transition system and the education market," October 2010, p. 23 2. Placement rate in industrial and nonindustrial professional training after 18 months according to the Education Report 2008 (BIBB transition study), p 165 3. In 2010, transition system expenses €4.3B for 324,000 youths in the transition system (Bertelsmann Foundation: "Influence of demographic development on the transition system and the education market," October 2010, p. 24 and Bertelsmann Foundation: "Employment in the life cycle," 2011, p. 11); scaled to an average period in the transition system of 17 months

JOBLINGE placement rate highly effective Compared with other measures (source: state government of NRW/Bertelsmann)

Vocational preparation measures (BvB)

Vocational orientation year (BOJ)

Workshop year (Werkstattjahr)

Training preparation (full time)

Training preparation (part time)

Youth workshop (Jugendwerkstatt)

Replacement rate (in %)

Source: Quota level for JOBLINGE as of Sept. '13, working paper of the Ministry of Labor, Integration, and Social Affairs of the state of NRW : "Neues Übergangssystem Schule – Beruf in NRW" (January 31, 2012) Note: JOBLINGE only counts placement in unsubsidized training positions or insurable employment as success—placement in further support programs not included

JOBLINGE currently active across Germany at 11 locations The success story continues

2014

Vision: In 2020 JOBLINGE will have

2020

6,500 youths placed in vocational training2 and thus aided … Hamburg

Hamburg Berlin

Ruhr

Cologne

Berlin

Ruhr

Cologne

Leipzig

Leipzig Frankfurt/ Rhine-Main

Frankfurt/ Rhine-Main

Stuttgart

Munich

11 locations, others in the planning stage Approx. 1,900 youths in the program

 In shaping their lives in a sensible and self-determined way through vocational training  In becoming sustainably integrated into society

Bayerwald Stuttgart

 In avoiding a life on social welfare

Munich

Approx. 20 locations

 In receiving the opportunity to lead a financially independent life and have a family and children

More than 10,000 youths in the program1

JOBLINGE wants to also initiate reforms in the transition system between school and occupation 1. Assumption: JOBLINGE initiative grows with two locations/year; each location will guide 80 youth/year 2. Placement rate of 65%; occasional placement in work; sent to get appropriate help if necessary given the need for therapy, delinquency, etc.

Youth work for a vocational training position in JOBLINGE's six-month program Program steps:

Main content: Formats:

Admission

Practical experience

Probationary period

• Review of intended career • Job skills

• Practical verification of aptitude for training/job

Qualification internship

Application internship

Orientation

• Motivation and selection

• Career orientation • Job skills • Social skills

Charitable project work

Hands-on work projects

Follow-up

• Training or hire

On-site training

Individual work, coaching Cultural and athletic program Coaching by/working Betreuung with mentors durch/Arbeit mit Mentoren

 duration:

~ 2 weeks Apply to

Milestones: JOBLINGE

~ 6 weeks Accepted by JOBLINGE

~ 20 Four groups start per year with approx. 20 participants

~ 6 weeks Career chosen

~ 11 weeks

Job skills acquired

Receive training/ job contract

Individual coaching

JOBLINGE's success builds on four pillars

Joint dedication to excellence in our contribution to JOBLINGE! Practical experience from day one

One-on-one mentoring1

 Teamwork  Success in hands-on work  Motivation of being on-site  Bottom-up, empowering teaching methods

 Personal connection and role model  Professional prep. and supervision of volunteers  Personal development for both sides

Joint local commitment

Strong network for the underprivileged  Public authorities  Industry (> 1,100 companies)  Civil society (> 900 mentors and trainers)

Professional controlling

Transparent and effective  Nonprofit structure (gAG)  Umbrella org. ensures QM and sharing of best practices  Joblinge Foundation for sustainability

Strong partners = reliable central support 1. Volunteer mentors are professionally trained and coached

Growing number of partners employing JOBLINGE mentoring as part of their management development programs JOBLINGE mentoring offers …

JOBLINGE mentoring integrated in employee development

… Relevant facets of personnel management, e.g., • Recognizing strengths and potential • Promoting initiative and independence • Demonstrating paths for development • Leading structured feedback talks • Persuasion … Support within the organization • Informational workshops for employees • Trainings (mandatory) • Close volunteer supervision … Valuable experience • Professionally and personally enriching for volunteers • Specific, nonstaged leadership experience • Ideal supplement to social commitment and targeted employee qualification

"Because they influence the future of a young person, our junior employees find their work in the development program to be significant and relevant—an experience that can't be replaced by mere role play" Helaba 1. JOBLINGE project work as part of the trainee program

Strong partner network based on JOBLINGE's success 1,100 companies

Public sector

JOBLINGE offers companies a varied CSR package Interregional support

Form of commitment

Supporting the growth of the initiative

Partner motivation

Grants/ donations

Training/ internship

Mentoring/ coaching

Taking responsibility locally as a stockholder

Supporting local youths in participating in the program

Training/internship position offers

Employees volunteer as mentors/coaches

Long term: usually 5 years

Medium term: usually 3 years

Continuously: ~ 6–10 weeks, or 2–3 years

Continuously: 6 months, or periodically

Premium partners starting at €50,000 p.a.

One-time application for stocks + ~ €20,000 p.a.

€5–10,000 p.a.

(usually connected with donation)

"We donate 10,000 euros annually; with cofinancing from the public sector1 our donation is actually worth 20,000 euros. Thus we finance four scholarships and help four youths get on track."

"We have already had many from JOBLINGE as interns and now our second trainee. We profit from the great JOBLINGE support even after the end of the program."

"We not only support JOBLINGE financially, we also commit ourselves together with our employees." "We also use JOBLINGE as a management development tool."

Duration

Grant amount

Local stockholders

"With our annual donation to the umbrella organization, we enable the program to expand quickly throughout Germany with consistent quality …"

1. European Social Fund (ESF)

"As a stockholder of JOBLINGE Munich, we can demonstrate our commitment effectively and sustainably. We can actively help to shape the initiative."

Modular investment structure Companies can invest in many ways Supporter Duration of commitment

Interregional partner

As long as possible (poss. 5 years)

Grants

Mentors

Training

Contribution per year(€) Starting at €50,000— premium partner Usually €20,000 (Grants: 4 participants)1

Stockholder

As long as possible (poss. 5 year)

Grantor

Min. 3 years (starting in 2013)

€5–10,000 (Grants: 1–2 participants)

Corp. Volunteer

Continuously

Training partner

Continuously

Local partner

Stockholder

Optional 1. Investment in stock capital of JOBLINGE Ruhr in the year of foundation plus donation for location setup

Currently active nationwide at 11 locations, more announced Charitable stock corporations set the framework for local commitment Ruhr

Berlin

Under development: Hamburg

with Essen and Gelsenkirchen

Start date

Stockholders

Start date

Stockholders

January 2013

June 2010

No. of employees

7.5

Participants

125 per year

80 per year Hamburg

Berlin

Cologne

Leipzig Stockholders

Start date

Leipzig Ruhr

January 2012

Cologne

No. of employees

Frankfurt/ Rhine-Main

February 2012 No. of employees

5.5

Participants

80 per year

Frankfurt/Rhine-Main

Munich Stuttgart

with Frankfurt, Offenbach, the BergstraĂ&#x;e, and Wiesbaden

Munich Start date

Stockholders

Start date

Stockholders

Start date

March 2011

gAG Region Stuttgart

Stockholders

April 2009 No. of employees

No. of employees

Start date

14,5

May 2014

Participants

No. Of employees

Participants

250 per year

80 per year

AktionĂ¤re

Participants 80 pro Jahr Active

Under development

JOBLINGE—1,900 participants so far Facts and figures ... bei weiterhin überdurchschnittlichen Vermittlungsquoten trotz starken Wachstums.... Vermittlungserfolge in ungeförderte, sozialversicherungspflichtige Ausbildung

Social impact

• Placement rate: 65% • Sustainability rate: 80%

68 33

BvB

Berufsorientierungsjahr 12

Aktivierungshilfe

Werkstattjahr

Ausbildungsvorbereitung (VZ)

Ø 16% 9

Ausbildungsvorbereitung (TZ)

Jugendwerkstatt 0

Vermittlungsraten (in %) Quelle: Quotenstand JOBLINGE per Aug '13, Arbeitspapier des Ministerium für Arbeit, Integration und Soziales des Landes NRW : " Neues Übergangssystem Schule – Beruf in NRW" (31.01.2012)

JOBLINGE seit Start auf starkem Wachstumskurs...

Growth

• 1,900 participants so far—currently more than 650 spots annually • 11 locations nationwide—two of which opened in 2014 already

Mehr als 1.500 Teilnehmer bis Ende '13...

... durch starkes geographisches Wachstum

Anzahl Teilnehmer 2.000

Anzahl MAK 58

+49%

1.582 1.500

+72%

1.070

19 8

(+140)

372

0 5

182

2 500

304

136

4 3

-20

102 1

34 -500

2008

BY X

1.000

448

622 318 34

11 10-1

512

2009

2010 Kumuliert

2011

2012

Ist

2013 (Plan) Plan

-40

2008

2009

2010

MA Kapazität

2011

2012

2013

2014 (Plan)

Anzahl Standorte

Kommentar: HR = Hochrechnung, FC = Forecast 1. Grundschuljahr Quelle: Finanzübersicht Stand April 2013, Quotenstand JOBLINGE per Aug '13, Arbeitspapier des Ministerium für Arbeit, Integration und Soziales des Landes NRW : " Neues Übergangssystem Schule – Beruf in NRW" (31.01.2012)

Financing Partner network Public

Reforms

• Total budget: €3.8M in 2013 • Of which ~ €1.7M donations, ~ €2.1M public support • ~ 1,100 corporate partners • ~ 900 volunteers, ~ 20 public institutions • > 70 positive press reports in 2013 • German Fairness Prize 2013, "best practice" in Bertelsmann and ebs study • Support from administrative board of the Federal Employment Agency • Initiator of reforms in the transition system

Kontrolle von Vermittlungserfolg und Nachhaltigkeit

Zahlung nur bei Erfolg

Vorfinanzierung + erfolgsabhängiger Bonus

JOBLINGE contacts for further information

Ulrike Garanin

Christina Schinz

Director JOBLINGE umbrella organization Principal, The Boston Consulting Group Ludwigstraße 21 80539 Munich Tel. +49 89 2317 4584 Mobile +49 170 334 4584 garanin.ulrike@bcg.com

Marketing and Communication JOBLINGE umbrella organization Ludwigstraße 21 80539 Munich Tel. +49 89 2031 8064 Mobile +49 176 7214 0271 christina.schinz@joblinge.de

Donation account Recipient: Account number: Routing number: IBAN: BIC:

JOBLINGE Stiftung 16542466 30220190 DE68302201900016542466 HYVEDEMM414

Appendix

32% of participants with vocational training in wholesale/retail and office work Regularly placed participants in % 100% 100 18% 80

14% 11%

10% 7%

6% 4%

30% 0

Placed in training

Wholesale/retail

Office administrator

Social/health care

Plant mechanics/ mechatronics

Hotel/hospitality

Warehouse logistics

IT specialist

Other

Including • Gardner • Interior designer • Road builder • Carpenter 16

Charitable stock corporations allow for shareholding and ensure professional implementation at each location Professional support and controlling

JOBLINGE charitable stock corporation Voluntary supervisory board (Decision makers from business, politics, and society)

A charitable stock corporation assures the following advantages: • Civic participation • Various forms of support • Regional integration

Voluntary board of directors

• Public awareness and interest • Business-like implementation, e.g.,

Salaried team Project Leader

– Measurable targets Assistant

– Clear quality standards – Specified responsibilities

Coordinator participants & mentors I

Coordinator participants & mentors II

Coordinator companies

Follow-up support

– Efficient processes – Proactive communication – Transparent performance

(Founding) stockholders

Charitable stock corporations supported by an umbrella organization that assumes control and service tasks Umbrella organization as contact for all locations

Core tasks of the umbrella organization

Initiators and licensors

Growth JOBLINGE Munich

JOBLINGE Bayerwald

JOBLINGE Foundation

Instruments

Concept developm.

JOBLINGE Berlin

JOBLINGE Frankfurt/ Rhein-Main

JOBLINGE Leipzig

Charitable umbrella org. (JOBLINGE)

JOBLINGE Cologne

Future locations

JOBLINGE Ruhr

Organization

Communication



Quality mgmt.

€ Financing

Goal: Accelerated growth, excellent service, and transparent control 18

JOBLINGE changes youths' lives What do participants say about JOBLINGE?

Affirmation and self-confidence

"My mother was very sick over the past years, and I spent most of my time looking after her, so I didn't have much time for school, homework, or friends. She passed away last year. I applied for many jobs, but I only got rejections. When I wanted to give up entirely, my mentor and the people at JOBLINGE believed in me. Now I am doing an apprenticeship in warehouse logistics, and I'm definitely going through with it!"

Susanne, 21, German

Practice and individual support

"Three years ago my family and I arrived here in Germany. I couldn't speak German at all at the time, and couldn't be bothered about school. I was sent to a youth home and I often had to deal with the police. At JOBLINGE, my friends and I started working right away. I realized that I am good at something after all! That's why I got my internship and now I'm doing an apprenticeship as a retail salesman. When things don't work there, I know JOBLINGE will still be there to help me." Piotr, 17, Russian

Note: Names have been changed

Prominent politicians support JOBLINGE as a concept to strengthen local civic involvement â&#x20AC;Ś Christine Haderthauer, Minister of State

Kerstin Liebich, State Secretary

Stefan GrĂźttner, Social Services Minister

April 2009: Opening of the Munich location

June 2010: Opening of Berlin location

March 2011: Opening of the Frankfurt location

Uwe Albrecht, Deputy Mayor

Garrelt Duin, Deputy Mayor, NRW

Heinrich Alt, Board of basic security, Federal Employment Agency

April 2012: Opening of the Leipzig location

February 2013: Opening of the Ruhr location

April 2013: "Five years of JOBLINGE"

… and the media coverage is overwhelmingly positive Selected press articles and awards

Spiegel Aug. 12, 2013: "The new cooperative state"

FAZ April 29, 2013: "What does full employment mean?"

Der Westen February 25, 2013: "'Joblinge' helps Esseners start their career "

Leipziger Volkszeitung September 28, 2012: "Creative JOBLINGE youths educate Leipzig"

FAZ August 8, 2012: "Different approach to finding training positions"

Passauer Neue Presse March 17, 2012: "Joblinge: Humanity counts"

Frankfurter Rundschau January 27, 2012: "How the downward spiral can end"

Süddeutsche Zeitung April 30, 2009: "Training Inc."

2010: Award from Wertebündnis Bayern

2012: "Land of Ideas" award

Berliner Morgenpost August 8, 2012: "The legend of the dumb student"

Handelsblatt, February 16, 2009: "Companies give unemployed youth a chance"

2013: "Fairness Initiative award 2013"

JOBLINGEâ&#x20AC;&#x201D;a joint initiative of